IFFCO AONLA REPOT

A Report on

Organization studyOf

INDIAN FARMERS FERTILISER COOPERATIVE LTD.

Submitted in partial fulfillment of the Requirements for the degree of

PGDM

SUBMITTED BY:

SATYA PAL

REG NO. (11PGDM055)

UNDER THE GUIDANCE OF

INTERNAL GUIDE EXTERNAL GUIDE

Prof. PUNEETA GOEL Mr. D.KALIA(FACULTY OF AAMS) Chief Manager (TRG)

ACHARYA ACADEMY OF MANAGEMENT STUDIES#3, Lingadheeranhalli,Off Magadi Road, Bangalore-91

ACHARYA ACADEMY OF MANAGEMENT STUDIES BANGALORE

STUDENT DECLARATION

This is to state the training report conducted an organizational study on INDIAN

FARMERS FERTILISER COOPERATIVE LTD (IFFCO), is based on the organizational

work carried out by me under the super vision of my project guide Prof.

PUNEETA GOEL towards the partial fulfillment of requirement for the A.I.C.T.E

approved P.G.D.M. program. This report has not been submitted to any other

university for the award of and degree/diploma.

PLACE: BANGLORE Signature of Student

DATE: SATYA PAL


Acharya Academy of Management Studies (Recognized by AICTE, Ministry of HRD, New Delhi)

#3, LINGADHEERANAHALLI, MAGADI ROAD, BANGALORE-560 091Tel: +91-80-23245515/16/17/18, Fax: +91-8023245519www.acharyaabbs.ac.in

CERTIFICATE FROM GUIDE

This is to certify that internship training titled “An organizational study carried out

by Mr. SATYA PAL has been prepared under my guidance and supervision. The

work has been satisfactory and is recommended for consideration towards award

of P.G.D.M. diploma.

Place: Bangalore Signature of

Guide

Date: Prof.

PUNEETA GOEL


Acharya Academy of Management Studies (Recognized by AICTE, Ministry of HRD, New Delhi)

#3, LINGADHEERANAHALLI, MAGADI ROAD, BANGALORE-560 091Tel: +91-80-23245515/16/17/18, Fax: +91-8023245519www.acharyaabbs.ac.in

CERTIFICATE

This is to certify that SATYA PAL, Reg no: 11PGDM055 a student of Acharya

Academy of Management studies during the academic year 2011-2013 has

successfully completed the internship training under the guidance of Prof.

PUNEETA GOEL in partial fulfillment of the requirements for the award of Post

Graduate diploma in Management.

Place: Bangalore Director

Date: AAMS


ACKNOWLEDGEMENT

I was advised and guided by a lot of persons, during the course of this

project work, and indeed grateful to all the persons for enabling the successful

completion of this project.

I am highly indebted and grateful to the Director DR. H.R. VENKATESHA

Acharya Academy of Management Studies, for their encouragement and support.

I am indebted to Prof. PUNEETA GOEL Faculty of Acharya Academy of

Management Studies for this valuable advices and kind cooperation, being my

guide and motivator.

I sincerely thanks to Mr. D.KALIA Chief Manager (Training & Development

deptt.) IFFCO AONLA, for their kind cooperation and valuable guidance towards

the successful completion of this project work.

PLACE: BANGALORE SATYA PAL

DATE: 11PGDM055


LIST OF CONTENTS

SL. NO.

CONTENTSPAGE NO.

1.INTRODUCTION 01

2.INDUSTRY PROFILE 02-05

3.COMPANY PROFILE 06-21

4. PRODUCT PROFILE 22-27

5. ORGANIZATIONAL CHART

28-36

6. FUNCTIONAL DEPARTMENTS 37-50

7. SWOT ANALYSIS 51-54

8. FINDINGS & SUGGESTIONS55-57

9. CONCLUSION 58-59


10. BIBLIOGRAPHY 60-61

LIST OF CHART:- PAGE NO.

HIERARCHY OF IFFCO 31

FACTORY CHART OF IFFCO AONLA 34

MARKETING CHART 39

UREA DISTRIBUTION CHANNEL PROCESS 40

FINANCE & ACCOUNTS 41


INTRODUCTION


The Indian fertilizer industry has been supplying a substantial portion of the

growing demand of fertilizers within the country. India is the third largest

producer of fertilizers in the world. There are 60 large size fertilizer plants in

the country, manufacturing a wide range of nitrogenous, phosphates and

complex fertilizers. Besides, there are 81 medium and small scale single

superphosphate units.

The cooperative sector has come to play a significant role in the Indian fertilizer industry. In

terms of nutrients, the share of cooperative sector in the installed capacity is 19.7 % for nitrogen

and 10.2 %for phosphate. Indian Farmers Fertilizer Cooperative Limited (IFFCO), a Multi-unit

Co-operative Society established on November 3, 1967 accounts for 64% of the installed

capacity of Nitrogen and the total of the Phosphate capacity in the cooperative sector. In the last

41 years

IFFCO has emerged as the pioneer venture in the cooperative sector. It has witnessed a meteoric

rise and has blossomed into the largest manufacturer and marketer of fertilizers in the

country. The success of IFFCO has encouraged the growth of the cooperative movement in

INDIA. The following is an organizational structure study of Indian Farmers Fertilizer

Cooperative Limited with special analysis of the IFFCO Aonla plant.


GLOBAL INDUSTRY

The International Fertilizer Industry Association or IFA is a not-for-

profit trade association that represents the global fertilizer industry, on

issues related to the promotion of plant nutrients, improvement of the

operating environment of the member companies and the collection and

compilation of industry information.

IFA has some 540 members in about 85 countries. About half of the

membership is based in developing countries. IFA member companies

represent all activities related to the production, trade, transport and

distribution of every type of fertilizer, their raw materials and intermediates.

The global fertilizer industry produces some 170 million tonnes

of fertilizer nutrients annually. These are used in every corner of the globe to

support agricultural production. There is no substitute for the nutrients

absorbed by crops. As a major source of these, fertilizers therefore represent

an essential ingredient in the drive towards sustainable agriculture and

world food security.

IFA's membership also includes organizations involved in construction,

engineering, consulting, agronomic research and training.


http://en.wikipedia.org/wiki/Food_security

http://en.wikipedia.org/wiki/Agriculture

http://en.wikipedia.org/wiki/Nutrients

http://en.wikipedia.org/wiki/Fertilizer



INDIAN INDUSTRY

Fertilizers have played a vital role in the success of India’s green revolution

and consequent self-reliance in food grains production. The increase in

fertilizer consumption has contributed significantly to sustainable production

in food grains in the country. Fertilizer is generally defined as “any material,

organic or inorganic, one or more of the chemical elements required for

plant growth”

India is the third largest fertilizer producer in the world. Fertilizer is a crucial

input contributing to about 40 per cent of the productivity of the crop. With

expanding agricultural production, improvement in technology and growing

awareness among farmer, the consumption of agrochemicals has been on

the upswing. The agrochemicals industry is made up of insecticides (74%),

herbicides (20%) and fungicides (6%). India is one among the most dynamic

generic pesticides manufacturing countries with a total market size of Rs 89

billion per annum. And yet, India’s own average consumption of pesticides is

very low at 480gms per hectare which results in crops worth about Rs 120

billion being annually destroyed by pests. Crop protection has assumed

special importance since food grains demand in the country is supposed to

reach an estimated 343 million tonne by 2020.

The agrochemical industry is spread over around 20 large manufacturers

and 600 formulators. While the organized sector contributes 55% to the

industry’s output, the small scale sector makes up for the balance. The


Indian industry has been focusing sharply on integrated crop management

(ICM), increasing exports of genuine pesticides and concentrating on farmer

friendly activities.

The pesticide industry is targeting a 10% share of global pesticides market

and has been working on the ICM programmed to introduce safer

applications, spray devices and crop protection through balanced use of

biological and chemical pesticide. The exports cover pesticide intermediates.

Pesticides export from India was growing at the rate of 15% and is expected

to witness a more accelerated growth. Spurious chemicals are growing at

rates varying from 10% to 12% and have cornered a large chunk of the

market.

The generic pesticide players include Excel Industries, Cheminova India,

United Phosphorus, Rallis India, Aimco Pesticides, Bharat Rasayan, Bayer

(India), Aventis, Meghmain Organics etc. producing a range of products like

urea, DAP,MOP, Nitrogenous fertilizer(N), Phosphatic fertilizer(P), Potassic

fertilizer(K) and NPK etc.

To conclude, fertilizer is a key ingredient in ensuring the food security of the

country, as it increases the production and productivity of the soil. The

domestic food grain production target has been set at 320 million tonns by

2011-2012. This target can be achieved by higher productivity through

improved farming practices, expansion of irrigation, better seeds and

extensive and balanced use of fertilizers. Towards this end, the government

of India is now planning to raise the production of urea by the end of

11th Five Year Plan by taking concrete steps to boost production and

productivity. All these things show the definite growth of fertilizer industry in

India.


Indian Farmers Fertilizer Co-operative Limited

Type Cooperative

Founded November 3, 1967

Headquarters New Delhi, India

Area served India


http://en.wikipedia.org/wiki/File:Iffco_logo.png

Key people

Natwarlal Pitambardas Patel, Chairman

Dr. Udai Shanker Awasthi, CEO

Products

Fertilizers

Revenue

211.9 billion (US$3.84 billion)(2010-11)

Net income 7.914 billion (US$143.24 million)(2010-

11)

INTRODUCTION ABOUT IFFCO

The fertilizer industry in India consists of three major players; The

Government owned Public Sector undertakings, Cooperative Societies

like IFFCO, KRIBHCO and units from Private sector. There are about 33

major producers producing N and NP/NPK fertilizers in the country at

present. The fertilizer industry of India had made constructive use of the

fertilizer provided by the Government of India to ensure that the country

achieved reasonable self-sufficiency in food grain production. The fertilizer

industry has organized itself through S Fertilizer Association of India (FAI) to

coordinate with the Government of India to achieve the macro-


economic objective related to agriculture sector and to provide other

services.

During mid- sixties the co-operative sector in India was responsible

for distribution of 70 per cent of fertilizers consumed in the country. This

sector had adequate infrastructure to distribute fertilizers but had no

production facilities of its own and hence dependent on public/private

sectors for supplies. To overcome this lacuna and to bridge

the demand-supp ly gap in the country , a new cooperat ive

soc ie ty was conceived to specifically cater to the requirements of

farmers. Thus was born IFFCO, the world’s largest fertilizer

cooperative.

It was a unique venture in which the farmers of the

country through their own co-operative societies created this new

institution to safeguard their interests.

Indian Farmers Fertilizer Cooperative limited, a multi-state

Cooperative has emerged as a role model for cooperatives Over 44 years of

its inception; IFFCO has turned into a true Cooperative – Of the

Farmers, By the Farmers and For the Farmers. IFFCO has steadily grown

in strength and stature from a modest membership of 57 soc ie t ies in

1967-68 to 39564 soc ie t ies as on 31 St March,2011. The initial

equity capital of Rs.6 lakh contributed by the cooperatives in 1967-68 has

also gone up to a paid-up capital of Rs.426 crore. Indian Farmers

Fertilizer Co-operative Limited (IFFCO) was registered on November

3, 1967 as a Multi-unit Co-operative Society. On the enactment of

the Multistate Cooperative Societies Act 1984 which was amended in 2002,

the Society is deemed to be registered as a Multi state Cooperative Society.

The Society is primarily engaged in production and distribution of


fertilizers. The bye laws of the Society provide a broad framework for

the activities of IFFCO as a Cooperative Society. A pioneer in this field,

IFFCO’s growth reflects its belief in the strength of the farmer. Several

prestigious awards stand testimony to the fact that IFFCO is driven by its

values and the dedication of its people. This is an organization that

believes in fair play and has always followed transparent and professional

practices in corporate governance.

IFFCO-AONLA UNIT


The Indian Farmers Fertilizer Co-operative Limited (IFFCO) is a national level

multi-unit cooperative society engaged in manufacturing and marketing of

chemical fertilizers. The Society was registered in 1987 and presently having

a membership of over 37,000 cooperatives as shareholders. IFFCO is

presently operating four factories located at Aonla and Phulpur in Uttar

Pradesh and Kalol and Kandla in Gujarat. IFFCO produced over 6 million

tones of fertilizers in 2004-05 and contributed about 18% to the total

Nitrogen and 24% to the total P205 produced in India. IFFCO markets its

fertilizers through Cooperative Agencies and Member Cooperative Societies.

Aonla project of IFFCO is one of the six natural gas based fertilizer plants set

up in the country on the H.J.B. pipe line which runs through four statuses.

This project has been designed to produce 7.26 lake tons of Urea per year

with plant capacity of 1350 TPD Ammonia and 2200 TPD of urea .The site is

28 km south west of Bareilly on Bareilly Aonla Road .

The total land acquired by IFFCO Aonla unit is 1273 acres for factory and

township.

The project consists of main plants, Ammonia plant, urea plant, steam

generator & power generator plant, other offsite facilities like water supply

and treatment system storage for spares consumables & products, bagging

plant laboratory, Inert gas plant, instrument air compressor etc. In addition

to these infrastructures facilities such a railway station siding etc. are also

created.


AONLA PLANT (evening view)

(IFFCO AONLA)

PLANTS OF AONLA UNIT:

There are mainly four plants in the unit namely:

AMMONIA PLANT:

There are two streams of Ammonia Plant having the capacity to

produce 2x1520 MTPD of liquid ammonia. The technology is based on

Holder Topside, Denmark process with natural gas and naphtha as main raw material.


UREA PLANT:

There are four streams of Urea Plant having the capacity to produce 2x1310

MTPD of urea fertilizers. The technology is based on Snamprogetti, Italyon

ammonia stripping process.

PRODUCT HANDLING PLANT:


Product handling plant is composed of Urea storage known as Silo and

packing and transport activities. Two silos of 45,000and 30,000MT capacity

have been provided to Urea product to ensure continuous urea

production even if it is not taken off due to non- availability of rail wagons

or seasonal demand fluctuations.

STEAM AND POWER GENERATION PLANT:

To meet the cont inuous power supply needs of the main plants,

captive power plant and stem generation facilities have been provided. In

this plant, two gas turbines each having the capacity of 18MWalong

with heat recovery steam generation unit has been provided to

cater to the plant needs of power and steam. Additionally, HRU unit of

Ammonia –II add to the steam supply of the complex.

OBJECTIVES OF IFFCO:-

The main objectives of the Society are as follows: -

o IFFCO is a cooperative institution of the farmers by the farmers.

o Strengthening cooperation distribution system.

o Educating and guiding the farmers.

o Promoting nations growth through modern farming techniques.

o Improving agriculture productivity, through balance fertilizer

applications.


o To promote the activity for enriching the life of rural.

o To achieve self reliant and self generated economy.

MAJOR AWARDS RECEIVED BY IFFCO

KALOL:

Seven awards for all performance from FAI.

Two awards for industrial safety from GOI.

Awards technical innovation from FAI.

Two Rajya Bhasha shields for promoting Hindi.

Awards for safety from National safety council, Chicago.

PHULPUR:


Four awards for productivity from NPC.

Six national safety awards for GOI.

Two awards for overall performance from FAI.

Two awards for technical innovation from FAI.

Three national energy conservation awards.

There awards for west environment protection from FAI.

AONLA:

Awards for west implemented project (II nd prize) from GOI.

Awards for conservation of energy from GOI.

Aonla wins CII Environmental Best PracticesAward-2011.

IFFCO Aonla Unit has been awarded the 'EDGE' winner prize.

IFFCO Aonla & Paradeep Unit have won the prestigious FAI awards presented on 3rd Dec.'2009.IFFCO Aonla Wins "Gold Award“10th Annual Green tech Environment Excellence Award 2009.

IFFCO Aonla Unit Wins National Safety Council of India Safety Award-

2004

KANDLA:

Ten safety awards from National Council, Bombay GOI.

Twenty one-safety awards from Gujarat Safety Council, Baroda.

Nineteen awards for safety from National safety council, USA.


Five awards for overall performance from FAI.

Rajya Sabha awards for promoting Hindi.

Best productivity awards from NPC.

LOGO OF IFFCO

The Logo any organizations is very important by which the company is

known to everyone or that is identity of the company. After one year of

establishment in 1968 the organization has decide to make Logo of IFFCO.

The executive of the company said that which can be easily fit any place or

easily changeable according to the place & made by simple geometrical

method. So the Logo is made by at last Mr. M.R.Gupta chief visualize

developer is like that


Logo’s green color shows the faith of the farmers, they believe that

after Using the urea their fields will always be green, the remaining white

color shows that the quality of the IFFCO’s product is very good & oval shape is meant

for prosperity.

BUSINESS PRINCIPLES OF THE COMPANY

The principles of the company are as follows:

o Appreciation of national need of generation up to optimum retur

n of investment.


o To fair price of the product manufactured by the company is

subsidy to the farmers.

o Total consumer satisfaction as a quality of product, price of the

product and better service after selling the product.

o Effective management information system.

o To increase the efficiency to maintain better human relation and

discipline among all the employees.

o To maintain better human relation and discipline among all the

employees.

o To develop good relation with customers.

KEY RESULT AREAS OF IFFCO


1. FERTILIZER PRODUCTION: The main aim of IFFCO is to

remove the dependence of the Indian Fertilizer sector on

Foreign Imports. For achieving this goal IFFCO runs and

maintains its Five Production plants and also aims to increase

its production capacity by adopting new technology and acquiring

new plants.

2. PROMOTION OF AGRICULTURAL AND RURAL

DEVELOPMENT: To achieve this target IFFCO undertakes

production, processing and manufacture of insecticides, pesticides,

seeds, agriculture machinery and implements and other agricultural

production requisites by setting up or taking on lease manufacturing

units either directly or in collaboration with or as a jo int venture

with other Cooperat ive Inst i tut ion. A lso IFFCO’s CORDET

is a major endeavor in this direction.

3. DEVELOPMENT OF AGRICULTURAL COOPERATIVES: IFFCO

aims to undertake, promote, assist and encourage development of

cooperatives with special thrust on sustainable agriculture and tries to

provide for social, economic and culture development of the members

through cooperative bodies, voluntary institutions and other

entities. IFFCO also promotes research and tra in ing on the

appl icat ion of modern management, technology and

g lobal experience for cooperative development


VISION & MISSION OF THE IFFCO

VISION - 2015

In pursuit of its growth and development, IFFCO had embarked upon and

successfully implemented its Corporate Plans, ‘Mission 2005’ and ‘Vision

2010’. These plans have resulted in IFFCO becoming one of the largest

producer and marketer of Chemical Fertilizers by expansion of its existing

Units, setting up Joint Venture Companies Overseas and Diversification into

new Sectors.

IFFCO has now visualized a comprehensive plan titled ‘Vision-

2015’ which will be guided by the following objectives:

a) Production of fertilizers through expansion of existing units.

b) Setting up of fertilizer production facilities in India and outside

the country through joint ventures.

c) Diversification into other Profitable Sectors.

d) Strengthening its raw material sourcing through Strategic Joint

Ventures in India and abroad.

e) Strategic Alliances through IFFCO Consortium.

The salient features of the ‘Vision-2015’ document are as

under:

a) To stand as a Global Leader in Fertilizers Production to cater to the food

security need of the nation.

b) Maximizing the synergies of the Core Business through Downstream Value


Additions and Forward/ Backward Integrations.

c) Enhancing presence in International Markets through Strategic Joint

Ventures and Synergistic Acquisitions.

d) Diversification into other profitable businesses to maximize returns to our

stakeholders.

e) Leveraging State of the Art Technologies and Global best practices to

retain its global competitiveness.

f) Promoting Integrated Nutrient Management to improve efficiency of

Fertilizer use and promoting location specific research on efficient fertilizer

practices.

g) To bring in Sustainability and Strategies to prevent Climate Change by

reducing Energy Consumption, better Resources Management and

promoting Renewable Energy sources.

h) To help the Cooperative Societies become economically strong,

professionally managed and to equip the Farming Community with advanced

agricultural practices for improved Productivity, to ensure an Empowered

Rural India.

i) Achieve Fertilizers Production / Marketing target of 15 million Tonne per

annum with an annual turnover of Rs. 30,000 crores.


MISSION

To provide to farmers high quality fertilizers in right time and in

adequate qualities with an objective to increase crop productivity.

To make plants energy efficient and continually review various

schemes to conserve energy.

Commitment to health, safety, environment and forestry development

to enrich the quality of community life.

Commitment to social responsibility for a strong social fabric.

To institutionalize core values and create a culture of team building,

empowerment and innovation which would help in incremental

growth of employees and enable achievement of strategic objectives.

Foster a culture of trust, openness and mutual concern to make

working a stimulating and challenging experience for stake holders.

Building a value driven organization with an improved and responsive

customer focus.

A true commitment to transparency, accountability and integrity in

principle and practice.


To acquire, assimilate and adopt reliable, efficient and cost effective

technologies.

Sourcing raw material for production of phosphates fertilizers at

economical cost by entering into joint ventures outside India.

To ensure growth in core and non-core sectors.


IFFCO's NPK/DAP

As far as Indian farmer is concerned, IFFCO's

NPK/DAP is not just a source of crucial nutrients N,

P, K for the crops, but is an integral part of his/her

quest for nurturing mother earth. The bountiful

crop that results from this care is an enough

reason for the graceful bags of IFFCO NPK/DAP

bags to be an integral part of the farmer’s family.

The two grades of NPK produced by IFFCO,

10:26:26 and 12:32:16, indicating the content of N, P, K proportion, is tailor

made to supply the exact composition required for replenishment of the soil.

The Indian farmer's confidence and trust stems from the fact that IFFCO's

NPK/DAP are merely a part of a complete package of services, ably

supported by a dedicated team of qualified personnel. More importantly,

they are aware, IFFCO is a cooperative society owned by farmers

cooperatives.

ABOUT DAP/NPK


DI-AMMONIUM PHOSPHATE

It is the most popular phosphate fertilizer because of its high analysis and

good physical properties. The composition of pure salt of DAP is N-21.19%

and P210 -53.76%.Fertilizer grade DAP is 18:46:0.

NPK COMPLEX GRADES

NPK complex fertilizers produced at Kandla are DAP based grades. At

present two grades Grade I - 10:26:26 and Grade II - 12:32:16 are produced.

Granular NPK complexes are free flowing and do not pose any problem

during handling and storage. However, exposure of material for long period

to very high humidity may cause caking. Therefore, NPK complexes are

bagged in quality tested HDPE bags to prevent ingress of moisture.

IFFCO's UREA

IFFCO's Urea is not merely a source of 46% of nutrient nitrogen for crops, but

it is an integral part of millions of farmers in India. A bag of IFFCO's

urea is a constant source of confidence and is a trusted companion

for Indian farmer.

When farmers buy IFFCO's urea, they know that what they get is

not just a product but a complete package of services, ably

supported by a dedicated team of qualified personnel.


ABOUT UREA

Urea is the most important nitrogenous fertilizer in the country because of

its high N content (46%N). Besides its use in the crops, it is used as a cattle

feed supplement to replace a part of protein requirements. It has also

numerous industrial uses notably for production of plastics. Hat it is their

own urea produced and supplied by a cooperative society owned by the

iffco.

BIO – FERTILISERS

A bio fertilizer unit was established at Cooperative Rural Development Trust,

Phulpur (Uttar Pradesh) in 1996 - 97 and other at Kalol (Gujarat) in 2008-09


with an annual capacity of 75 MT and 165 MT respectively of different

cultures such as Rhizobium, Azotobacter, PSM,

Azospirillium and Acetobacter

PHOSPHATE SOLUBILISING MICRO ORGANISM - Several soil bacteria and

fungi possess the ability to bring insoluble phosphates into soluble forms by

secreting organic acids. They can be applied to and recommended for all

crops

RHIZOBIUM - It is the most important nitrogen fixing organism. It live

symbiotically in the root nodules of leguminous plants and supply nitrogen to

the plant through nitrogen fixation. Besides, supplying nitrogen to the crop,

nitrogen fixed by legume - Rhizobia association would also leave residual

nitrogen for the succeeding crops. The beneficiary crops are Groundnut,

Soybean, Red-gram, Green-gram, Black-gram, Lentil, Cow pea, Bengal-gram

and Fodder legumes.

AZOTOBACTER - It is non symbiotic nitrogen fixing bacteria recommended

for non leguminous crops like Paddy, Wheat, Millets, Cotton, Tomato,

Cabbage, Mustard, Safflower and Sunflower. The AZOTOBACTER performs well

if the soil organic matter content is high.


ACETOBACTER - It is a symbiotic bacteria capable of fixing atmospheric

nitrogen by living within the sugar plant. They are found in all parts of plant

body. It is suitable for sugarcane cultivation

AZOSPIRILLIUM - It is an associative micro Europhilic nitrogen fixer is

commonly found in association with the roots of cereals and forage grasses.

The beneficiary crop includes Sugarcane, Vegetables, and Maize, Pearl

millet, Rice, Wheat, Fodders and Oil seeds.

QUALITY POLICY


ISO 9001-2000

IFFCO Aonla Unit is committed to achieve satisfaction of its co-operative

society, farming community and customer by manufacturing and supplying

specified quality product, by pursuing:

Improvement of enhancing / maintaining productivity and growth.

Creating safe and healthy working condition and eco-friendly

environment.

Co-operation and team sprite.

Development of Human Resources.

Continual improvement of effectiveness of its quality management

system.

ENVIRONMENT POLICY

Aonla Unit is committed for continual improvement and protection of

environment by setting and renewing its objects and targets through

environmental management system focusing at:

Compliance of legislation related to stack emissions, efficient

discharge, and ambient air and water quality.

Conservation of water resources.

Emergency preparedness for safety of plant and concerned personnel.

Effluent and waste minimization.

Development of all round awareness and competence on

environmental issues.


INTRODUCTION

Any operating organization should have its own structure in order to operate

efficiently. For an organization, the organizational structure is a hierarchy of

people and its functions.

The organizational structure of an organization tells you the character of an

organization and the values it believes in. Therefore, when you do business

with an organization or getting into a new job in an organization, it is always

a great idea to get to know and understand their organizational structure.

Depending on the organizational values and the nature of the business,

organizations tend to adopt one of the following structures for management

purposes.

Although the organization follows a particular structure, there can be

departments and teams following some other organizational structure in

exceptional cases.

Sometimes, some organizations may follow a combination of the following

organizational structures as well.

BUREAUCRATIC STRUCTURES

Bureaucratic structures maintain strict hierarchies when it comes to people

management. There are three types of bureaucratic structures:

FUNCTIONAL STRUCTURE


The organization is divided into segments based on the functions when

managing. This allows the organization to enhance the efficiencies of these

functional groups.

DIVISIONAL STRUCTURE

These types of organizations divide the functional areas of the organization

to divisions. Each division is equipped with its own resources in order to

function independently. There can be many bases to define divisions.

Divisions can be defined based on the geographical basis, products /

services basis, or any other measurement.

MATRIX STRUCTURE

When it comes to matrix structure, the organization places the employees

based on the function and the product. The matrix structure gives the best

of the both worlds of functional and divisional structures. In this type of an

organization, the company uses teams to complete tasks. The teams are

formed based on the functions.

Every organization needs a structure in order to operate systematically. The

organizational structures can be used by any organization if the structure fits

into the nature and the maturity of the organization.

.


HIERARCHY OF IFFCO


MANAGING DIRECTOR

FINANCE DIRECTOR

MARKETING DIRECTOR

EXECUTIVE DIRECTOR (PROJECT)

EXECUTIVE DIRECTOR (GENERAL MANAGER)

CHAIRMANAN

BOARD OF DIRECTORS

TRANSPORT ADVISOR

ORGANISATION STRUTURE OF IFFCO

The organization structure of IFFCO is such as to provide a high degree of

collaboration among the managerial personal. This help in attaining staff

effectiveness. The structures consist of both line & staff managers but there

is clear demarcation in their authorities & responsibility. Through the

structure provides unlimited power to the manager yet most of the manager

believes in benevolent leadership. This is the main reason behind the new

record made by IFFCO.

The Head Office of IFFCO is situated at New Delhi. It has cooperative staff

that plays a link pin role between cooperating units of Kalol, Kandla, Phulpur

& Aonla units. There are five zones. Each zone has its own headquarter of

each zone is as follows;

Zone Headquarter

North zone Chandigarh

East zone Kolkata

West zone Bhopal

North Central zone Lucknow

South zone Bangalore

Each headquarter has certain no. of neighboring states under it & the

functioning of those states is controlled by the particular headquarter; each


GENERAL MANAGER(KALOL)

GENERAL MANAGER(KANDLA)

GENERAL MANAGER(AONLA)

GENERAL MANAGER(PHULPUR)

state has a State Office under each zone. Under each state office there is

Area Office & under each Area office there are Service sectors.

The organization Structure of IFFCO consists of Board of Director. The

government of India nominates two member of the board. The member of

cooperatives societies nominates rest of the members. A chairman is the

functional Head of his organization since he has an elected member. There is

also a vice chairman elected by the member of the Board of director. Once

of the members of Board of directors is the Managing Director. The MD is the

Executive Head since he is an appointed member. The MD is responsible for

carrying out all the function of the organization.

The MD controls the function of the following;

Director Marketing

Director Finance

Executive Director (Personal & Administration)

Executive Director (Technical)

Executive Director (Technical service Deptt. / Planning &

Development)


FACTORY CHART OF IFFCO AONLA


Sr. General Manager

JGM JGM JGM Technical JGM F JGM JGM Utility

General Manager

IFFCO consists of both l ine and staf f manager but there is

c lear is

demarcation among their authorities and responsibility. The theme of Organi

zation Effectiveness is to have a high degree of collaboration among the

managerial personal through the structure provides unlimited.

Power to the manager yet of the manager believe in benevolent it

leadership. This is the main reason behind the new records made by this

unit.


JGM JGM JGM Technical JGM F JGM JGM Utility

GENERAL MANAGER OF OFFCO : -

General Manager has the h ighest authority of IFFCO Aonla whose

decision is final and followed by whole organization.

FINANCE AND ACCOUNT DEPARTMENT:-

The department co-operative with all division and complies the

organization financial result such a profit and loss account and balance

sheet, budgeting etc.

PERSONAL & ADMINISTRATION DEPARTMENT:-

It isresponsible for formulation policies procedures in personal andadministra

tion as whole under this all personal function, welfare, t ime-office, security

and hospital related functioning are dealt.

MAINTENACE DEPARTMENT:-

Under this department the maintenance of all of mechanical, electrical

maintenance, telephone and mechanical services are included.

PRODUCTION DEPARTMENT:-

Here under the production and all other related of production of

Ammonia and Urea are considered.

UTILIY DEPARTMENT:-

The department of Utilities performs the function of stream, power

and in offsite purification of water of recycling.


TACHNICAL DEPARTMENT:-

Here under technical services and engineering service of fire and safety

training research development, energy conversion scheme, safety and

population appliances take place and programs conducted.

MATARIAL DEPARTMENT:-

All materials, purchasing included under this department and are

managed according to the need of the hour.

CIVIL ENGINEERING:-

Planning documentation civil factory, civil engineering working and all

changes regarding these to are controlled and managed by this

department.

SYSTEM DEPARTMENT:-

Those is planned to considerable consolidation and integrates the data base

and further provide service beyond the operation level requirements in

application for material management, production reporting, financial

management, personal management etc.

TRANSPORT DEPARTMENT:-

It looks after the facility t o employee and their families for organization on c

onstruct for the organization


MARKETING & DISTRIBUTION

A strong marketing team and a sound distribution network make the bottom

line secure. Backed by this belief, IFFCO has gone all out to extend its reach,

resulting in the highest-ever sales of fertilizer material this year. With the

completion of Kalol Expansion Project, IFFCO is all set to realize the objective

of producing 100 lake tone of fertilizers, thereby attaining the distinction of

world leader in fertilizer production. Every fourth bag o f fertilizer produced

and every third bag of fertilizer sold in the country belongs to IFFCO. Around

40,000 cooperative societies and 158 Farmers Service Centers spread cross

29 states and union territories in India make

sure that IFFCO’s products- NPK/ NP/DAP/UREA- are easily available to

farmers.

These impressive figures have been made possible largely because of the

fact that IFFCO distributes its products through cooperative

channels. Though the cooperative structure may differ from state to

state, the goal is to reach out to each district, taluka and village and hence

sell more. This year, IFFCO has dispatched around 86 lake tone of fertilizer

material from its plants and ports by rail and road. With the aim of

delivering to the doorstep of the farmer in all parts of the country, the

organization hired storage space at more than 1,700 locations.

IFFCO’s Farmers Service Centers not only supply material less than one roof,

they are used as contact points for providing technical know-how to

farmers. These Centers also organize promotional programmed such as

soil test campaigns and farmers’ meetings.. During 2009-10, IFFCO has

notched up a record sale of 93.24 lake tone of fertilizer material

comprising of 54.29 lake tone of urea and 38.95 lake tone of NPK/ DAP /NP

witnessing a growth of 8.3% as against 86.10 lake tones in the previous

year. Best ever marketing productivity also sprang to 6158 tone/head.


MARKETING CHART


FERTILIZER MANUFACTURER

INSTITUTIONAL AGENCIES

PRIVATE TRADECOMPANY OWNED

OUTLETS

DISTRIC/TALUKA LEVEL

COOPERATIVE SOCIETIES

STATE AGRO INDUSTRIES

CORPORATION/ COMMODITY FED

PRIMARY AGRICULTURE

COOP, SOCIETY (PACS)

OWN RETAIL OUTLETS

PRIVATE DEALER

PRIVATE RETAIL DEALERS

MARKETERS/ WHOLESALER

FARMERS

DISTRIBUTION & WAREHOUSHING

Distribution of Urea and inter-state movement is under government

controlled and is regulated under the

Essential Commodities Act (ECA) 1956. Under ECA, supply plan for

Urea is formulated by the government in consultation with the State

Department Of Agriculture and Fertilizer industry. IFFCO urea is moved

from factory to field warehouse by both road and rail. Movement through rail

is resorted to on a need basis to

distant locat ions at the shortest t ime. Consumption of urea

is seasonal thereby rendering transportation, storage and

distribution is very important.

Urea Distribution Channel Process:-

IFFCO PRODUCTION

AREA OFFICE

S O C I E T I E S WARE- H O U S I N SUB

AREA OFFICE

F A R M E R S


Fertilizer distribution Both by Rail (90%) and Road (10%).

300 Km. Distance by Road.

For warehousing following services are uses:-

Federations & Cooperative Godown.

Central Warehousing Corporation (CWC)

State Warehousing Corporation (SWC)

FINANCE & ACCOUNTS

In spite of constraints in availability of raw materials, and inordinate delays

in receipt of large subsidy amounts from Government of India, IFFCO has yet


FINANCE & ACCOUNTS DEPARTMENT

BILL SECTION FINANCIAL CONCURRENCE

SECTION/ BUDEGE

BOOKS SECTION

PAYROLL & TAXATION SECTION

P & L SECTION

SUPPLY SECTION

NOTE SHEET PAYMENT

WORK ORDER SECTION

again delivered an impressive financial performance in all its major

parameters, namely, Revenue Growth, Operating Margins and Resource

Utilization testifying to robustness of its Corporate Strategy of creating

multiple drivers of growth. This was possible due to higher production, sales

volume and improvement in operating efficiencies. The Society achieved the

highest ever.

Sales turnover of Rs211.9 billion in 2010-11 . This represents an increase of

18 per cent over the previous year. It was brought out by higher volume of

Sales of Fertilizer materials, which increased to 93.24 Lakh tone fertilizer

during 2009-10 as against 86.10 lakh tone in the previous year. The

performance is even more satisfying when viewed in the light of challenging

business environment of fertilizer industry.

The various area covering under the preview of 3 subsections are as follows:

BOOKS SECTION:-

This section basically deals with accounting function, maintenance and

keeping of records.

The various functions include:

Books: Preparing and maintaining balance sheets.

FICC (Fertilizer Industries Coordination committee)

Costing & Pricing Cells

Reporting

PAY ROLL SECTION:-

Aonla Unit undertakes processing of salary and other staff related payments

of all employees through Human Resource Management System

(HRMS). It is an integrated package based on Oracle DBMS. The


System integrates Personnel & Administration Department and

Finance & Accounts Department.

Simultaneously, Financial Accounting System (FAS) which is also based on

Oracle DBMS has been launched in F&A DEPARTMENT through

which General Ledger Sub Ledger of Employees are maintained and

Trial Balance and Financial Accounts are generated. There is also inter-

relation of HRMS and FAS so that cash payment/receipt vouchers, Bank

Payment Vouchers and Journal Vouchers generated in HRM are

automatically posted online to Payroll Section of Finance & Accounts

Department.

TAXATION SECTION:-

As per the status and operation of the society, it deals with the following

Taxes-

Central Excise Duty.

Income tax.

Service Tax.

Sales Tax.

HUMAN RESOURCE DEPARTMENT

No vision, however grand, can be fulfilled without the cooperation of its

people. Recognizing this fact, IFFCO has made a sustained investment in its

people, creating an environment that attracts the best talent.

At IFFCO, we see teamwork at its best. Employees at all levels share a

common dream, a dream that is understood in IFFCO’s Vision 2015.


Hence, enhancing skills is of great significance for the organization. Other

initiatives to help the growth of its people included workshops on

human values, leadership and work ethics. There were also many

technical activities that led to development and skill up gradation.

Employees were sponsored for participation I prestigious both in India and

abroad. With the firm belief that Information and Communication Technology

(ICT) helps the people and the organization to grow together, IFFCO

has augmented its work flow applications. The Corporate Data Centre

in New Delhi has been refurbished with the latest technology. A new VPN

was created to provide round-the-clock connectivity in the plants, zonal

office and head office. IFFCO has, over the years, successfully showcased its

image in India and overseas.

Its achievements and its contributions to the farming community are highlig

hted in various exhibitions.

The HRD Cel l ensures adequate supply proper quantity and

quality as well as effective of human resources. The Human

resources Management refers to the approach to the problem of

selecting t r a i n i n g , m o t i v a t i n g a n d r e t a i n i n g ,

p e r s o n n e l i n a n y o r g a n i z a t i o n . A n

organizat ion wi l l determine i ts man

power needs and their f ind out the sources from the requirement

will be met.

It carries out following activities:-

RECRUITMENT:-

For recruitment and selecting both internal as well as external

sources are used.


Internal Recruitment:-

Promotion of workers from the lower to upper rank according to the

eligibility criteria.

External Sources:-

In IFFCO the External Recruitment is restored it is happen only when

internal sources dry up. Here is no agency and the vacancies are not field in

employment exchange not by advertisement in news paper is also

given in –

External Sources 40%

Internal Sources 60%

SELECTION:-

As regardless selection process the company has laid the criteria for screening

the application are screen out and the application are called for psychological and

personality. Selection is done by a selection committee consisting of

head of concern department and external specialist and their decision.

TRAINING:-

Most of the employees are then required to undergo extensive off the job

and on the job training in various disciplines.

POSTING & TRANSPER:-

Regardless of the post to which the employee is initially appointed and

the station where he is posted IFFCO reserves the right to transfer from

one post to another post and from one station to another anywhere in


INDIA inc luding transfer in new Establishment that might be started

in future.

PROMOTION:-

IFFCO has fixed and written promotion policy. The policy is based seniority

and merit. Usually IFFCO give the promotion to the employee according their qualification and

Grade wise. Generally merit is given weight age.

TERMINATION:-

An employee service may be terminated at any time on one month (but

not less than 30 days) notice on either site or by the employee.

I N D U S T R I A L R E L A T I O N : -

I F F C O h a s s e t u p h e a l t h y relationship with other industry and

it encourages this type of relationship industry feel the proud with

dealing IFFCO. The main function of IR section is as follows:-

o Compl iance of Statutory provis ion.

o D e a l i n g w i t h u n i o n .

o P a r t i c i p a t e d D i s p u t e .

WELFARE:-

IFFCO deals with various welfare activities (like sport and cultural

programs for employee’s canteens etc.)

TIME OFFICE:-

IFFCO keep track of employee’s attendance. Employees are electronic

cards which are to be electronically punched at the time entering and

leaving the office.


PROVIDENT FUND:-

IFFCO has its own board of employee’s providence fund as per EFP and

Mice. Provision Act 1952 and PF benefits shall be as IFFCO EPS rules.

RETIREMENT:-

I n t h e I F F C O t h e r e t i r e m e n t a n d s u p e r annulations shall be at

the age of 58 years.

INVETORY MANAGEMENT

Inventories encompass finished goods produced or work in process being

produced by the enterprise and include materials, maintenance supplies,

consumables, loose tools awaiting use in the production process.

Types of inventory:

Inventory of raw materials

Inventory of stores and spare parts

Inventory of work-in-progress

Inventory of finished goods

PRODUCTION

The largest producer of fertilizers in the country, IFFCO has five state-of-the-

art plants that ensure its special position. These are considered

to be among the best professionally managed fertilizer plants in the world.


IFFCO had set up the KALOL plant for manufacture of Nitrogenous Fertilizer

and KANDLA plant for manufacture of Phosphoric fertilizer.

These plants commenced commercial production in the year 1974-75.

Ammonia - urea complex was setup at Phulpur in the state of Uttar Pradesh

in 1981.

The ammonia - urea unit at Aonla was commissioned in 1988. As part of the

new vision and in order to augment its complex fertilizer

manufacturing capacity, IFFCO acquired DAP/NPK/NP plant in Paradeep,

Orissa in September 2005. This was a historic moment, for it was the first

private sector unit to be acquired by any Indian cooperative.

The Paradeep unit was expected to achieve an optimal production load

during 2008-09. During 2007-08, IFFCO’s plants rolled out 68.47 lake tonne

of fertilizer material comprising 39.63 lake tone of urea and 28.84 lake

tonne o f NPK/ DAP / NP wh ich

bears ample tes t imony to i t s super la t ive per formance. IFFCO

market share in ‘N’ production is 20 percent and 25 percent in P2O5

Produced in the country. IFFCO has initiated energy saving schemes in all its

five ammonia plants at a cost of Rs. 410 crore.


CORPORATE SOCIAL RESPONSIBILITIES

In line with its vision and mission statement, IFFCO has undertaken several

social

activities in the areas of education, community development, environment p

rotection and horticulture, health care/medical facilities

etc, all with the intent of reaching out to those in need and improving the

quality of their lives. Adopting a villages of paramount importance to IFFCO.

The programmed started with an objective to bring about overall

development in the living standards of rural community through integrated

rural development with particular

emphasis on agriculture development, creation of drinking water facilities, m

edical and veterinary check up.

I FFCO has adopted 439villages, thus empowering many lives. Another

scheme that benefits the farmers is Sank at Haran Bima Yojana, launched by

IFFCO’s subsidiary, IFFCO-Tokio General Insurance Company Limited (ITGI).

Here, farmers are provided insurance against accidents with the purchase


of a 50 kilogram bag of IFFCO fertilizer. This reaches out to member

cooperative societies. The policy has helped over 7,000 people since its

inception in September 2001.

ITGI also offers customized policies for farmers such as Barish Bima Yojana,

Mausam Bima Yojana and Janta Bima Yojana. IFFCO has initiated several

promotional projects to provide greater opportunities to the farmer by

organizing field days, farmers meetings, sales point personnel training, crop

seminars, special agriculture campaigns to effect transfer o f

modern farming t rends . Besides, kits containing seeds, fertilizers, bio-

fertilizers and agrochemicals along with Booklets/ literature were distributed

to farmers. The aim: enhancing crop productivity and thus improving lives. In

keeping with its intent of empowering the weaker sections of society,

including women, IFFCO presents monthly scholarships to deserving

students and also organize straining programmed for women. The

organization has instituted 17 IFFCO Chairs at agricultural universities and

cooperatives. The emphasis is on current topics in agriculture. IFFCO uses its

12 storage-cum-community Centers for helping people come together and

share their experiences.

The environment is a major concern with IFFCO. Its units and townships

comprise beautiful landscapes, surrounded by trees. IFFCO is also committed

to improving the safety, health and environment of its manufacturing units,

in line with international norms. The Kalol, Phulpur, Aonla and Kandla units

have been awarded the ISO- 14001 certificate for Environment Management

System. Further, the Kalol, Phulpur and Aonla plants have received the ISO-

9001 certification for Quality Management. IFFCO has contributed Rs 10

crore to set up the IFFCO Kisan Sewa Trust. This Trust assists farmers in

getting medical treatment. Employees also contribute regularly to it. The

Kisan Sewa Trust organizes cancer detection and eye camps and arranges

for blood through the Red Cross Society. The IFFCO Foundation has been


promoted as the think tank of the organization. Its objective is to focus on

strengthening village level cooperatives in harmony with the law and culture

of the country. Indian Farm Forestry Development Cooperative Limited

(IFFDC), promoted by IFFCO, was given a certificate of appreciation by the

Tata Energy Research Institute for its efforts towards good corporate

citizenship. The Cooperative Rural Development Trust provides practical

training to farmers and has organized 229 programmed in 2008, benefiting

22,221 farmers.

IFFCO OPERATING PLANTS

IFFCO’s four modern fertilizer plants in operation Kandla & Kalol in Gujrat,

Phulpur & Aonla in Uttar Pradesh have a total production capacity of about

27 lack tones of bulk fertilizer annually the kalol plants has an annual

production capacity of three lake tones of ammonia and 3.99 lake tone of

urea. The Kandla plant has annual production capacity of 3.09 lake tones of


P2O5. Aonla project of IFFCO is one of the six natural gas based fertilizer

plants set up in the country on the H.J.B. pipe line which runs through four

statuses. This project has been designed to produce 7.26 lake tone of Urea

per year with plant capacity of 1350 TPD Ammonia and 2200 TPD of UREA.

The site is 28 km south west of Bareilly on Bareilly Aonla Road . The total

land acquired by IFFCO Aonla unit is 1273 acres for factory and township.

( AONLA TOWNSHIP GATE)


SWOT analysis is a technique through which managers create a quit

overview of a company’s strategic situation. It is based on the assumption

that an effective strategy derives from a sound fit between firms internal

resources (strength & weakness) and its external situation (opportunities &

threats). A good fit maximizes a firm’s strength and opportunities and

minimizes its weakness and threats.


STRENGTH:-

1. Fertilizer is the basic raw material for agriculture production NO GOVT.

can dare to make policies which are not conducive to the farmers.

2. Demand of fertilizer is more in the country than the production

capacity therefore whatever is produced will be sold.

3. Government ensures the availability of raw material (NG/NAPHTHA) at

reasonable price as it has at subsidy of fertilizer is subsidizing product.

4. IFFCO is a co-operative organization and selling its product through co-

operative channel. There are only to organization IFFCO & KRIBCO. It

means not much competition in the channel.

5. All plants are of latest technology of art and are in healthy condition.

WEAKNESS:-

1. As per by law of the company it can fallows the co-operative channel

only for sale of its product. In case demand fall short in the channel

company end up with higher stock inventory.

2. Price of the product cannot be raised and government pay the

subsidies as per its calculation of fertilizers cost.

OPPORTUNITY:-

1. IFFCO can cut on cost by reducing energy consumption for per MT of

UREA, thereby enhancing its profitability. IFFCO has taken up energy


saving product in all its five AMMONIA plants at the cost of Rs 410

corer.

2. IFFCO can also reduce its fixed cost per MT of UREA by enhancing its

production capacity & thereby increase in production and profitability.

IFFCO has taken up capacity enhancement project for all its Ammonia

& Urea plants.

3. IFFC O also taken up power project at Chhattisgarh.

4. IFFCO has also contributed 25% Equity in OMAN India fertilizers

company (OMIFCO).

5. IFFCO is also perusing a multiproduct KISSAN SEZ at NELLORE in A.P.

6. IFFCO has also entered into a long term of take and supply agreement

with international holdings of AUSTRALIA for supplying rock phosphate

to insure raw material supply NPK/DAP fertilizers plants.

THREATS:-

1. NG supply in the country is not sufficient to meet present country

requirement. However NG in liquid form is imported from various gulf

countries and rigidified at petro net in Gujrat to meet demand of

fertilizers units.

2. If supplies of NG suffer due to an region. It will be reflected in

production of IFFCO.

3. NAPHTHA is also imported Gulf countries. Its rates are not stable in the

international market & it availability is also affected by its international

demand.

4. Rock phosphate is also imported to produce NPK/DAP at IFFCO’s

Kandla & Paradeep unit. Supply of Rock phosphate is also a threat to


the production NPK/DAP. It rate are not stable in the international

market.

ANALYSIS:-

With the finding of NG at KG basin of RIL most of requirement of fertilizers

units will be meet for the countries on resources and dependability on the

import will be reduce thereby ensuring the raw material supply to the

fertilizer unit at reasonable price. Further IFFCO has made long term

agreement for procurement of Rock phosphate with various countries to

overcome. It major threats of raw materials for the production of NPK/DAP

therefore it can be said that IFFCO is on sound footing to protect it stability

and enhance it profitability by cutting on cost and increasing production in

years to come.

STRATEGIES:-

1. IFFCO is doing its best to conserve energy & keeps it consumption at

lowest label.

2. Enhance its production by enhancing the capacity of the existing

plants & constructing new plant.

3. Reducing cost by low energy consumption & increasing production to

enhance it profitability.

4. Ensure supply of raw material by entering into agreement nationally or

international with the suppliers.

5. IFFCO also care for the community. This commitment is reflected in

many ways on day-to-day bases. IFFCO believes in the welfare of

society. It has embarked on much corporate social responsibility (CSR)


project. These projects cover education community development

environment & health.


FINDINGS

Majority of the farmers are using IFFCO product and rest are using

other including Tata, Narmada & others.

60% of the farmers are waiting for a particular brand of fertilizers

Most of the farmers are selecting the fertilizers on brand basis and

second major criteria to select the fertilizers are availability.

90% of the farmers desired for the plastic bag and only 10%for

the jute bag

70% of farmer’s desire 50kg pack & rest 30% prefer 25kg pack.

In a village about 60% farmers meetings,15% Field Day,10%

Socioeconomic &15% Other Promotional Programmed were organized

by IFFCO.

I found that farmers are satisfied with the IFFCO fertilizers even in un adopted villages.

There are a number of reasons to prefer the plastic bag:

o Moisture control.


o Reusable and strong.

SUGGESTION

1. The organizat ion should establ ish a nat ional level

committee which can fami l iar ize the government with the

ground realities in the Fertilizer sector and also advise the government

in format ion of Po l ic ies regarding d istr ibut ion of

fert i l i zers , import of fert i l i zers and subsidies.

2. There should an Entrepreneurship Development Cel l at

a l l p lants which should encourage innovation amongst

employees. This would infuse some of the positives of an organic

design in to the organizational environment. This cell should lay new

business ideas and innovations in front of the top levels of

management.

3. Unnecessary sub-divisions in departments should be eliminated

to promote efficiency. In the Personnel & Administration

department one sub-division can handle both Legal Matters and

Contract Laws.

4. The Inspections & Plant Health Department can be dissolved.

The Maintenance Department can have an additional sub-division

for Inspections & Plant Health. This will streamline the organizational

structure and also increase the efficiency of overall maintenance.


5. The Co-operat ion should not be r ig id in i ts approach and

should be ready to face sudden variations in business

environments. Managers should not limit themselves to

following regulations blindly but should proactively analyze

situations.


CONCLUSION

The organizational study of the IFFCO Aonla Plant and also the

analyses of IFFCO in general demonstrate that a bureaucratic

organizational structure is not always inefficient. In fact if properly applied

it has many positive aspects especially in large and complex

organizations. For example some types of rules and regulations are

required to avoid unpredictability and arbitrary action. Some sort of

hierarchal arrangement is necessary to manage the large number of people

in an organization. Therefore the key is to utilize the characters of a

bureaucratic structure but not to over emphasize on them as those results in

rigidity in the structure. In a bureaucratic organizational structure an

efficient business environment may be created by having the right mix of

mechanistic and organic models. IFFCO's experience has also shown


that cooperative sector can succeed even in high investment high

technology areas like fertilizer production. The large scale extension

activities and cooperative development programmed have strengthened

the bond between IFFCO and the Indian farmers who are the

consumers as well as members of the village level cooperative

societies. The confidence generated by this success has paved way

for a vigorous growth programmed to expand its existing units as

wel l as establ ish new units. This wi l l enable IFFCO to emerge

as a global leader in production and marketing of chemical fertilizers

located in a single country.


Website

www.iffco.nic.in

Search Engine

Google

Books

IFFCO Company’s Annual Report 2010-11


Kotler Philip ‘MARKETING MANAGEMENT’ 13TH EDITION. “MARKETING DEPARTMENT”

615-617.

GREEN BERG & BARON: “BEHAVIOR IN ORGANIZATION”, 2003, PRENTICE

– HALL OF INDIA PVT. LTD.

Dr. D.KALIYA CHIEF MANAGER (TRAINING & DEVELOPMENT) IFFCO,

AONLA.

P.MATHUR MANAGER (TRAINING & DEVELOPMENT) IFFCO AONLA.


IFFCO AONLA REPOT

Education

Transcript of IFFCO AONLA REPOT